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ISA Rules
Posted: March 21st, 2024, 4:16 pm
by GQ78
I have maxed my £20,000 allowance for 2023/24 but am keen to take advantage of a decent rate that's currently on offer in case it's pulled. Can I open the account now and make my deposit post 5 April?
Re: ISA Rules
Posted: March 21st, 2024, 4:33 pm
by swill453
GQ78 wrote:I have maxed my £20,000 allowance for 2023/24 but am keen to take advantage of a decent rate that's currently on offer in case it's pulled. Can I open the account now and make my deposit post 5 April?
Yes, the limits only apply to adding new money into ISAs.
Scott.
Re: ISA Rules
Posted: March 21st, 2024, 4:53 pm
by Gerry557
Technically yes but no but!
You are not supposed to open more than one provider although this rule gets scrapped in the new tax year. I did make a mistake once and added funds into two different brokers. I fessed up to the tax man but the total added to the two isas remained within annual limits. This probably helped. No further action was taken.
Will the new provider allow you to open a zero balance account or transfer in from one of your other isa holdings?
I won't visit you in prison if it all goes wrong
Re: ISA Rules
Posted: March 21st, 2024, 5:57 pm
by mc2fool
Gerry557 wrote:Technically yes but no but!
You are not supposed to open more than one provider although this rule gets scrapped in the new tax year. I did make a mistake once and added funds into two different brokers. I fessed up to the tax man but the total added to the two isas remained within annual limits. This probably helped. No further action was taken.
Will the new provider allow you to open a zero balance account or transfer in from one of your other isa holdings?
I won't visit you in prison if it all goes wrong
You are (currently) not allowed to
subscribe to more than one ISA (of a kind) in each year. Subscribe = add new money to. You can
open as many as you like, as long as you only add new money to one.
Re: ISA Rules
Posted: March 21st, 2024, 6:42 pm
by GQ78
Thank you all for your replies.
Re: ISA Rules
Posted: March 22nd, 2024, 12:01 am
by rthak
GQ78 wrote:I have maxed my £20,000 allowance for 2023/24 but am keen to take advantage of a decent rate that's currently on offer in case it's pulled. Can I open the account now and make my deposit post 5 April?
Can you share? I’m looking for an account!
Re: ISA Rules
Posted: March 22nd, 2024, 7:11 am
by richlist
Some ISA providers of fixed rate ISA's allow additional funds to be added (Barclays, Shawbrook, Kent BS).
Re: ISA Rules
Posted: March 22nd, 2024, 6:19 pm
by ukmtk
I opened a cash ISA with Leeds last week - it was offering 4.75%.
With no funds in the ISA the interest rate was 0.05%.
It only went to 4.75% when the necessary funds had been received - minimum £1000.
So things might not go the way you hope/expect.
Re: ISA Rules
Posted: March 23rd, 2024, 10:53 am
by chas49
ukmtk wrote:I opened a cash ISA with Leeds last week - it was offering 4.75%.
With no funds in the ISA the interest rate was 0.05%.
It only went to 4.75% when the necessary funds had been received - minimum £1000.
So things might not go the way you hope/expect.
I'm not sure of your point here. It wouldn't make any difference what the interest rate is on a zero balance. Have I missed something?
Re: ISA Rules
Posted: March 23rd, 2024, 11:18 am
by ukmtk
I thought the poster was hoping to open an account now and make a deposit in the next tax year?
It might be possible that the preferential rate is not guaranteed until a deposit is made.
Apologies - I'm famous for sending terse emails at work - assuming that the reader knows what I'm thinking.
Re: ISA Rules
Posted: April 26th, 2024, 1:01 pm
by bruncher
Gerry557 wrote:
You are not supposed to open more than one provider although this rule gets scrapped in the new tax year.
Is this (2024/25) the first Tax Year when we are allowed to split our allocation into multiple providers? I've just noticed this and was about to put 20k into one provider whereas I would prefer to split the cash and fund two (both stocks and shares) ISA accounts.
Re: ISA Rules
Posted: April 26th, 2024, 1:17 pm
by kempiejon
bruncher wrote:Gerry557 wrote:
You are not supposed to open more than one provider although this rule gets scrapped in the new tax year.
Is this (2024/25) the first Tax Year when we are allowed to split our allocation into multiple providers? I've just noticed this and was about to put 20k into one provider whereas I would prefer to split the cash and fund two (both stocks and shares) ISA accounts.
Yes I too was surrised to have missed the announcement, someone on here pointed me int he right direction a few weeks ago.
This removes the restriction on subscribing to only one ISA of each type per year, however all subscriptions must remain within the overall ISA subscription limit of £20,000.
The exceptions are that:
investors with a Lifetime ISA (LISA) are still restricted to subscribing to one LISA a year
investors with a Junior ISA (JISA) are still restricted to subscribing to one of each type in a year
under 18s affected by the transitional arrangements set out at 1.1 are not permitted to subscribe to more than one cash ISA in a tax year
There's a few other changes details here I think
https://www.gov.uk/government/publicati ... sletter-11
Re: ISA Rules
Posted: April 26th, 2024, 2:05 pm
by bruncher
Looks like they decided not to proceed with the idea of an extra 5k in the ISA for UK investments.
Re: ISA Rules
Posted: April 26th, 2024, 2:58 pm
by Grumpsimus
bruncher wrote:Looks like they decided not to proceed with the idea of an extra 5k in the ISA for UK investments.
No decision has yet been taken. All that was announced about the UK ISA in the Budget was a consultation, which is currently in progress. It is unlikely that it could be introduced before the next tax year. However, before then it is likely that we will have a change of government, what happens then is unknown.
Clearly it is not worth worrying about the UK ISA.